Non-compete & contract check

Before you sign an offer, or hand in your notice, it's worth knowing what your employment agreement actually restricts. This guide explains the clauses that catch people off guard, with a checklist to help you spot them.

This is not legal advice.

Everything here is general education to help you ask better questions. It is not a review of your contract and cannot tell you what's enforceable where you live. For anything that affects your livelihood, talk to an employment attorney licensed in your state.

Why this matters

Most people sign their employment paperwork on day one without reading it, then forget it exists, until they want to leave. Restrictive clauses can quietly shape where you can work next, who you can talk to, and even what you can build on the side. Knowing what yours says puts you in a far stronger position, whether you're negotiating an exit or evaluating a new offer.

The clauses to look for

Non-compete
Restricts where and what you can work on after you leave. Pay attention to three things: scope (which roles or industries), duration (how long), and geography (where). The broader each one is, the more it limits you, and, in many states, the less likely a court is to enforce it.
Non-solicit
Restricts you from contacting former clients or recruiting former colleagues. Narrower than a non-compete, but often easier to enforce, and some versions try to cover people who reach out to you first.
IP assignment
Defines what the company owns. A sweeping version may claim inventions and side projects beyond your job. If you have side work, read this one closely.
Garden leave & notice traps
Requires a long notice period, or that you sit out a paid (or unpaid) stretch before starting somewhere new. It can delay your next role by weeks or months.
Clawbacks & forfeiture
Triggers repayment of a bonus, signing money, or training costs when you leave, or forfeiture of vested equity or commissions if you go to a competitor.

Red-flags checklist

Check every clause that appears in your agreement. This is a thinking tool, not a verdict: it can't tell you whether anything is enforceable where you live.

0 of 8 red flags checked

Nothing checked yet. Read each clause in your agreement against the list above. Restrictive language is easy to skim past.

General information only. This is not legal advice. Rules vary by state and change over time; nothing here is a determination of your situation. This checklist is general education, not a review of your contract and not legal advice. For anything that affects your livelihood, talk to an employment attorney licensed in your state. Find a lawyer (state bar referral).

If several flags are checked

A restrictive agreement isn't automatically a disaster, but it is a signal to get real advice before you act. Enforceability varies enormously by state, and in some places certain non-competes are unenforceable or banned outright. Don't guess, and don't rely on this page: a short paid consultation with an employment attorney licensed in your state will tell you what actually applies to you, and can often save you far more than it costs.

Frequently asked questions

Are non-competes even enforceable?
It depends heavily on where you live. Some states refuse to enforce most non-competes, others enforce them only if they're narrow and reasonable, and the rules keep changing. 'Unenforceable' also doesn't mean harmless. An employer can still threaten litigation that's expensive to fight. Only an attorney licensed in your state can tell you how a specific clause is likely to be treated.
What's the difference between a non-compete and a non-solicit?
A non-compete restricts where and what you can work on after you leave. A non-solicit is narrower: it restricts you from contacting former clients or recruiting former colleagues. Non-solicits are generally easier for employers to enforce than broad non-competes, so read them just as carefully.
Can my employer own things I make on my own time?
A broad IP-assignment clause can try to claim inventions and side projects, sometimes including work done on your own time and equipment. Many states limit how far this can go, but the contract language matters. If you have or plan side projects, this is one of the most important clauses to understand before you sign.
When should I talk to a lawyer?
Any time a clause could realistically limit your next job, your side income, or your equity, and especially before you sign a new contract or accept an offer that might conflict with an old one. A short paid consultation is far cheaper than a dispute, and this page is not a substitute for that advice.

Related

General information only. This is not legal advice. Rules vary by state and change over time; nothing here is a determination of your situation. The enforceability of these clauses varies by state and changes over time. Find a lawyer (state bar referral).